You have been asked to audit the financial statements of Ramirez Company and report on your findings. After examining the beginning and ending ventory Beginning inventory is overstated by $14,000. Management of the company wants to know the effect that the errors will have on certain financial statement items. Required: Ignoring income taxes, determine the effect that the errors will have on the following: is the item overstated What is the amount of or understated Net Income Overstated Understated Overitated Understated Cost of Goods Sold